The key question facing the sector will be pick up in sector revenue growth, which in our view is likely once Jio stabilizes with c110-120m paying subscribers. We add that at present Jio’s market share is constrained by a limited 4G ecosystem and it is possible that Jio may try to address this by launching a 4G feature phone. Such a launch would likely see some tariff pressure, as such stability in 1Q revenues may not help, and we may not get a better picture of sector revenue growth prospects in FY18 until 2QFY18e.

We note that one more driver for sector revenue is likely to be an upgrade by pure voice subscribers to bundled plans, however any upside may be capped if Jio's 4G feature phone launch is combined with more disruptive pricing action.